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Introduction

  • Jenny Buchan
Chapter

Abstract

In this chapter, the economic importance of franchising is set out. The franchise, franchisor, franchisee, franchise network and franchise system are introduced and defined. The unresolved challenges that confront regulators of franchising are presented. Franchisees are clearly vulnerable at numerous junctures which are introduced in this chapter. Broadly, the causes are asymmetry, the nature of the franchise agreement as a standard form yet relational contract, and the absence of corporate governance mechanisms between franchisor and its franchisees. Weaknesses in the franchise model are brought into starkest relief if the franchisor becomes insolvent.

Keywords

Corporate Governance Small Business Consumer Protection Business Format Insolvency Process 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  • Jenny Buchan
    • 1
  1. 1.Australian School of BusinessUniversity of New South WalesKensingtonAustralia

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